2024 (9) TMI 476 - AT - Income Tax

Denial of exemption claimed u/s. 11 - ROI as well as Form No.10B had been filed by the assessee after the due date specified - HELD THAT - As far as the delay in filing of Form no. 10B is concerned the CIT(E) has condoned the delay for filing of Form 10B vide his order dated 06/08/2024. Therefore, in our considered opinion, on this issue there should not be any denial of exemption u/s 11 of the Act. Delay in filing of ROI - Section 12A(1)(ba) of the Act stipulates that, to claim exemption u/s 11 of the Act, the return must be filed in accordance with the provisions of section 139(4A). However section 12A(1)(ba) have been inserted w.e.f. 01/04/2018 i.e. applicable w.e.f. A.Y. 2018-19 only and hence the same is not applicable to the year under consideration. Therefore, due to delay in filing of ROI for the year under consideration also, there cannot be any denial of exemption u/s.11 of the Act. Hence we are of the considered opinion that the assessee is eligible for exemption u/s. 11 - Appeal of the assessee allowed.

Summary

Issues:
1. Denial of exemption u/s 11 of the Income Tax Act, 1961 due to delay in filing ROI and Form 10B.

Analysis:
The appeal was filed by the assessee against the order passed by the Learned ADDL/JCIT (A)-2, Mumbai, denying exemption u/s 11 of the Act for A.Y. 2014-15. The assessee, engaged in running an orphanage school, filed its ROI and Form 10B after the due date specified under the Act. The Central Processing Centre determined the total income at Rs. 82,83,576/- by disallowing the exemption claimed u/s 11 of the Act.

The Ld. First Appellate Authority dismissed the claim of the assessee, citing the late filing of ROI and Form 10B as a violation of the Income Tax Rules. The Authority held that the Assessing Officer rightly disallowed the exemption claimed. The assessee then appealed, arguing that the delay in filing Form 10B was condoned by the Ld. CIT(E), and section 12A(1)(ba) was not applicable for the year under consideration.

The Tribunal considered the submissions and held that since the delay for filing Form 10B was condoned, there should be no denial of exemption u/s 11 of the Act on that ground. Regarding the delay in filing ROI, the Tribunal noted that section 12A(1)(ba) was not applicable for the relevant year. Consequently, the Tribunal concluded that the assessee was eligible for exemption u/s 11 of the Act for the year under consideration and directed the revenue authorities to allow the exemption.

In conclusion, the Tribunal allowed the appeal of the assessee, overturning the decision of the Ld. First Appellate Authority and granting the assessee the exemption u/s 11 of the Act for A.Y. 2014-15.